logo
Senate passes Donald Trump's big tax and spending cuts bill as Vance breaks a 50-50 tie

Senate passes Donald Trump's big tax and spending cuts bill as Vance breaks a 50-50 tie

Qatar Tribune12 hours ago
Agencies
Senate Republicans hauled President Donald Trump's big tax breaks and spending cuts bill to passage Tuesday by the narrowest of margins, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session.
The outcome capped an unusually tense weekend of work at the Capitol, the president's signature legislative priority teetering on the edge of approval or collapse. In the end that tally was 50-50, with Vice President JD Vance casting the tie-breaking vote.
Three Republican senatorsThom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky — joined all Democrats in voting against it.
'In the end we got the job done,' Senate Majority Leader John Thune of South Dakota said afterward.
The difficulty for Republicans, who have the majority in Congress, to wrestle the bill to this point is not expected to let up. The package now goes back to the House, where Speaker Mike Johnson of Louisiana had warned senators not to overhaul what his chamber had already approved. But the Senate did make changes, particularly to Medicaid, risking more problems ahead. House GOP leaders vowed to put it on Trump's desk by his July Fourth deadline.
It's a pivotal moment for the president and his party, as they have been consumed by the 940-page 'One Big Beautiful Bill Act,' as it was formally titled before Democrats filed an amendment to strip out the name, and invested their political capital in delivering on the GOP's sweep of power in Washington.
Trump acknowledged it's 'very complicated stuff,' as he departed the White House for Florida.
'I don't want to go too crazy with cuts,' he said. 'I don't like cuts.'What started as a routine but laborious day of amendment voting, in a process called vote-a-rama, spiraled into an all-night slog as Republican leaders bought time to shore up support.
The droning roll calls in the chamber belied the frenzied action to steady the bill. Grim-faced scenes played out on and off the Senate floor, amid exhaustion.
Thune worked around the clock desperately reaching for last-minute agreements between those in his party worried the bill's reductions to Medicaid will leave millions more people without care and his most conservative flank, which wanted even steeper cuts to hold down deficits ballooning with the tax cuts.
The GOP leaders had no room to spare. Thune could lose no more than three Republican senators, and two — Tillis, who warned that millions of people will lose access to Medicaid health care, and Paul, who opposes raising the debt limit by $5 trillion — had already indicated opposition.
Attention quickly turned to two other key senators, Lisa Murkowski of Alaska and Collins, who also raised concerns about health care cuts, as well as a loose coalition of four conservative GOP senators pushing for even steeper reductions. Murkowski in particular became the subject of GOP leaders' attention, as they sat beside her for talks. Then all eyes were on Paul after he returned from a visit to Thune's office.
Senate Democratic Leader Chuck Schumer of New York said Republicans 'are in shambles because they know the bill is so unpopular.'
An analysis from the nonpartisan Congressional Budget Office found 11.8 million more Americans would become uninsured by 2034 if the bill became law.
The CBO said the package would increase the deficit by nearly $3.3 trillion over the decade.
Pressure built from all sides. Billionaire Elon Musk said those who voted for the package should 'hang their head in shame' and warned he would campaign against them.
But Trump had also lashed out against the GOP holdouts including Tillis, who abruptly announced his own decision over the weekend not to seek reelection.Few Republicans appeared fully satisfied as the final package emerged, in either the House or the Senate.
Collins fought to include $50 billion for a new rural hospital fund, among the GOP senators worried that the bill's Medicaid provider cuts would be devastating and force them to close.
While her amendment for the fund was rejected, the provision was inserted into the final bill. Still she voted no.
The Maine senator said she's happy the bolstered funding was added, but 'my difficulties with the bill go far beyond that.' And Murkowski called the decision-making process 'agonizing.'
She secured provisions to spare Alaska and other states from some food stamp cuts, but her efforts to bolster Medicaid reimbursements fell short. She voted yes.All told, the Senate bill includes $4.5 trillion in tax cuts, according to the latest CBO analysis, making permanent Trump's 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips.
The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide.
It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states.
Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants.
'The big not so beautiful bill has passed,' Paul said.Unable to stop the march toward passage, the Democrats tried to drag out the process, including with a weekend reading of the full bill.
Sen. Patty Murray of Washington, the ranking Democrat on the Appropriations Committee, raised particular concern about the accounting method being used by the Republicans, which says the tax breaks from Trump's first term are now 'current policy' and the cost of extending them should not be counted toward deficits.
She said that kind of 'magic math' won't fly with Americans trying to balance their own household books.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US halts some weapons shipments to Ukraine
US halts some weapons shipments to Ukraine

Al Jazeera

time2 hours ago

  • Al Jazeera

US halts some weapons shipments to Ukraine

The United States says it is halting some weapons deliveries to Kyiv that were promised under the Biden administration, as Russia intensifies its attacks on Ukraine. The Biden-era pledges, which included various munitions to bolster Ukraine's defences, are now under review as the Pentagon reassesses current inventory levels. The move could signal a shift in priorities under President Donald Trump, who has pressed for a more restrained global military posture. 'This decision was made to put America's interests first following a review of our nation's military support and assistance to other countries across the globe,' said White House spokesperson Anna Kelly in a statement on Tuesday. The internal assessment by the Pentagon found some stockpiles 'too low' to justify immediate transfer to Ukraine, said a US official who spoke on condition of anonymity, according to Politico, which first reported the halt of military aid. 'America's military has never been more ready and more capable,' said Pentagon spokesperson Sean Parnell, noting a major tax and defence spending bill in Congress would help modernise systems for long-term deterrence. Politico and other US media reported that missiles for Patriot air defence systems, precision artillery and Hellfire missiles are among the items being held back. Russia intensifies assault The delay comes at a precarious moment for Ukraine, as Russia intensifies its aerial bombardment in one of the heaviest phases of the war. Hopes for a ceasefire – long championed by Trump – have faded further, with talks between Kyiv and Moscow stalled. Since the start of Russia's full-scale invasion in February 2022, the US has provided more than $66bn in weapons and security assistance to Ukraine. Throughout the war, Washington has also urged its allies to supply air defence systems, particularly Patriot missile batteries. However, many NATO members remain reluctant to give up the systems, particularly countries in Eastern Europe that are wary of Russia. Trump, who met Ukrainian President Volodymyr Zelenskyy during last week's NATO summit, acknowledged Ukraine's request for more Patriots. 'They do want to have the antimissile missiles, OK, as they call them – the Patriots,' Trump said. 'We're going to see if we can make some available. We need them, too. We're supplying them to Israel, and they're very effective. Hard to believe how effective.' Elbridge Colby, undersecretary for policy at the US Department of Defense, said the administration was exploring ways to balance continued support for Ukraine with readiness at home. 'The department is rigorously examining and adapting its approach,' Colby said, 'while preserving US forces' readiness for current defence priorities.'

Trump says Israel agrees terms for ceasefire, urges Hamas to accept
Trump says Israel agrees terms for ceasefire, urges Hamas to accept

Al Jazeera

time2 hours ago

  • Al Jazeera

Trump says Israel agrees terms for ceasefire, urges Hamas to accept

Trump says Israel agrees terms for ceasefire, urges Hamas to accept NewsFeed President Donald Trump says Israel has accepted a 60-day Gaza ceasefire deal, but he gave no details of the plan. Hamas has previously said it wants full Israeli troop withdrawal and security guarantees. Trump is due to meet Israeli Prime Minister Benjamin Netanyahu next week. Video Duration 02 minutes 27 seconds 02:27 Video Duration 00 minutes 26 seconds 00:26 Video Duration 01 minutes 40 seconds 01:40 Video Duration 00 minutes 48 seconds 00:48 Video Duration 00 minutes 55 seconds 00:55 Video Duration 00 minutes 27 seconds 00:27 Video Duration 00 minutes 51 seconds 00:51

Trump's ‘Big, Beautiful Bill' passes Senate: What's in it, who voted how?
Trump's ‘Big, Beautiful Bill' passes Senate: What's in it, who voted how?

Al Jazeera

time5 hours ago

  • Al Jazeera

Trump's ‘Big, Beautiful Bill' passes Senate: What's in it, who voted how?

The United States Senate narrowly passed President Donald Trump's massive tax and spending bill on Tuesday, following intense negotiations and a marathon voting session on amendments. The bill, which still faces a challenging path to final approval in the House of Representatives, would impose deep cuts to popular health and nutrition programmes, among other measures, while offering $4.5 trillion in tax reductions. The measure was approved after almost 48 hours of debate and amendment battles. Here is what you need to know: What is Trump's 'Big, Beautiful Bill'? The bill is a piece of legislation that combines tax cuts, spending hikes on defence and border security, and cuts to social safety nets into one giant package. The main goal of the bill is to extend Trump's 2017 tax cuts, which are set to expire at the end of 2025. It would make most of these tax breaks permanent, while also boosting spending on border security, the military and energy projects. The bill is partly funded by cutting healthcare and food programmes. The nonpartisan Congressional Budget Office estimates Trump's measure will increase the US debt by $3.3 trillion over the next 10 years. The US government currently owes its lenders $36.2 trillion. The key aspects of the bill include: In 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, but it primarily benefitted higher-income earners. Those tax breaks are set to expire this year, but the new bill would make them permanent. It also adds some more cuts he promised during his campaign. There is a change to the US tax code called the SALT deduction (State and Local Taxes). This lets taxpayers deduct certain state and local taxes (like income or property taxes) on their federal tax return. Currently, people can only deduct up to $10,000 of these taxes. The new bill would raise that cap from $10,000 to $40,000 for five years. Taxpayers would also be allowed to deduct income earned from tips and overtime, as well as interest paid on loans for buying cars made in the US. The legislation contains about $4.5 trillion in tax cuts. If the bill does not become law, the child tax credit – which is now $2,000 per child each year – will fall to $1,000, starting in 2026. But if the Senate's current version of the bill is approved, the credit would rise to $2,200. The bill sets aside about $350bn for Trump's border and national security plans. This includes: $46bn for the US-Mexico border wall $45bn to fund 100,000 beds in migrant detention centres Billions more to hire an extra 10,000 Immigration and Customs Enforcement (ICE) agents by 2029 as part of Trump's plan to carry out the largest mass deportation effort in US history. To help offset the cost of the tax cuts and new spending, Republicans plan to scale back Medicaid and food assistance programmes for low-income families. They say their goal is to refocus these safety net programmes on the groups they were originally meant to help, primarily pregnant women, people with disabilities and children – while also reducing what they call waste and abuse. Medicaid helps Americans who are poor and those with disabilities, while the Supplemental Nutrition Assistance Program (SNAP) helps people afford groceries. Currently, more than 71 million people depend on Medicaid, and 40 million receive benefits through SNAP. According to the Congressional Budget Office, the bill would leave an additional 11.8 million Americans without health insurance by 2034 if it becomes law. Republicans are pushing to significantly scale back tax incentives that support clean energy projects powered by renewables like solar and wind. These tax breaks were a key part of former President Joe Biden's landmark 2022 law, the Inflation Reduction Act, which aimed to tackle climate change and reduce healthcare costs. A tax break for people who buy new or used electric vehicles would expire on September 30 this year if the bill passes in its current form, instead of at the end of 2032 under current law. The legislation would raise the debt ceiling by $5 trillion, going beyond the $4 trillion outlined in the version passed by the House in May. According to Yale University's Budget Lab, wealthier taxpayers are likely to gain more from this bill than lower-income Americans. They estimate that people in the lowest income bracket will see their incomes drop by 2.5 percent, mainly because of cuts to SNAP and Medicaid, while the highest earners will see their incomes rise by 2.2 percent. Which senators voted against the bill? Republican Senator Susan Collins of Maine opposed due to deep Medicaid cuts affecting low-income families and rural healthcare. I strongly support extending the tax relief for families and small businesses. My vote against this bill stems primarily from the harmful impact it will have on Medicaid, affecting low-income families and rural health care providers like our hospitals and nursing homes. — Sen. Susan Collins (@SenatorCollins) July 1, 2025 Republican Senator Thom Tillis of North Carolina cited concerns over Medicaid reductions to his constituents. Tillis has announced that he will not seek re-election, amid threats from Trump that he would back a Republican challenger to Tillis. The facts matter. The people matter. The Senate's Medicaid approach breaks promises and will kick people off of Medicaid who truly need it. The Senate can make one simple fix to make sure that won't happen. — Senator Thom Tillis (@SenThomTillis) June 30, 2025 Republican Senator Rand Paul of Kentucky voted 'no' on fiscal grounds, warning that the bill would significantly worsen the national deficit. Throughout the Vote-a-rama, I was working all night to stop Congress from adding to our debt. I met with @VP and I reiterated my offer to vote for the bill—if it included a 90% reduction in the debt ceiling. No earmarks. No handouts. Just real fiscal reform. I wasn't looking… — Rand Paul (@RandPaul) July 1, 2025 Every member of the Democratic caucus, a total of 47 senators, also voted against the bill. Who supported the bill in the Senate? The remaining Republicans voted in favour, allowing the bill to pass 51–50, with the deciding vote cast by Vice President JD Vance. Trump has set a July 4 deadline to pass the bill through Congress, but conceded on Tuesday that it would be 'very hard to do' by that date, since the House now needs to vote on it. The House had passed an earlier version of the bill in May, but needs to look at it again due to the amendments brought by the Senate. Notable Senator supporters include: Senator Lisa Murkowski (representative of Alaska): Her backing was secured after Republicans agreed to Alaska-specific provisions, including delayed nutrition cuts and a new rural health fund, making her vote pivotal. 'I have an obligation to the people of the state of Alaska, and I live up to that every single day,' she told a reporter for NBC News. Senators Rick Scott of Florida, Mike Lee of Utah, Ron Johnson of Wisconsin and Cynthia Lummis of Wyoming: These fiscally conservative senators shifted from hesitation to support following amendments to the bill. Senate Majority Leader John Thune led the push to pass the legislation. How have lawmakers and the public reacted? Most Republican lawmakers celebrated it as a historic achievement. Trump also expressed delight. 'Wow, music to my ears,' Trump said after a reporter told him the news. 'I was also wondering how we're doing, because I know this is primetime, it shows that I care about you,' he added. Thune said after the vote: 'In the end, we got the job done, and we're delighted to be able to be partners with President Trump and his agenda.' Democrats opposed it, calling it a giveaway to the wealthy at the expense of healthcare, food aid and climate policy. 'Today's vote will haunt our Republican colleagues for years to come,' Democrat Chuck Schumer said in a floor speech after the vote. 'Republicans covered this chamber in shame,' he added. Today's vote will haunt Senate Republicans for years to come. Americans will see the damage done as hospitals close, as people are laid off, as costs go up, and as the debt increases. Democrats will make sure Americans remember the betrayal that took place today. — Chuck Schumer (@SenSchumer) July 1, 2025 The US Chamber of Commerce led a coalition of more than 145 organisations supporting the bill, emphasising it would 'foster capital investment, job creation, and higher wages'. They praised the permanent tax cuts and border security funding. However, healthcare and hospital associations have warned that millions could lose coverage, driving up emergency and unpaid care costs. Environmental groups have also voiced strong opposition. Public opinion on the bill is in decline, too. 'Initially, [Trump] had more than 50 percent of the support. Now, it is under 50 percent, and politicians know that,' Al Jazeera's Alan Fisher said, reporting from Washington, DC. 'They are aware that this could lead to a cut in Medicaid. They are aware, even though Donald Trump had promised to protect it, that this could cut nutritional programmes, particularly for poorer families in the United States. 'And although they will get tax cuts, they have managed a lot of the time to be convinced by the Democratic argument that, yes, there are tax cuts, but billionaires will do much better out of this than the ordinary American people, and that is what's changed the opinion polls,' he added. What happens next? The process begins with the House Rules Committee, which will meet to mark up the bill and decide how debate and consideration will proceed on the House floor. After the bill passes through the Rules Committee, it will move to the House floor for debate and a vote on the rule, potentially as soon as Wednesday morning. If the House of Representatives does not accept the Senate's version of the bill, it could make changes and send it back to the Senate for another vote. Alternatively, both chambers could appoint members to a conference committee to work out a compromise. Once both the House and Senate agree on the final text, and it is passed in both chambers of Congress, the bill would go to Trump to be signed into law.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store